Denmark-based DONG Energy has been selected by the Isle of Man government in the UK for construction of a 700MW offshore wind power project in the Irish Sea.

Parts of the territorial waters and seabed under the Isle of Man will be leased for tidal and offshore power developments, reports Reuters.

DONG Energy won the bid for the lease and will now set up the wind farm off the east coast of the Isle of Man. Dutch energy firm Tocardo Tidal Energy has also received another lease from the government for surveying a potential tidal project.

Meanwhile, local firm Manx Tidal Energy has won two more leases also for tidal power development in the territory.

Possible sites for the tidal energy schemes will be around the Point of Ayre, Calf of Man and Castletown, according to Reuters. The government is expecting the leases to generate around £5m ($8m) annually.

Leases are granted for 25 years, however can be further extended for another 25 years, reports ReNews.

Power generated from the sites will be supplied to meet energy requirements in the UK. Surveys for the project sites are likely to start by 2015.